Core and semi-core EGBs are trading.....>

EGB SUMMARY: Core and semi-core EGBs are trading modestly higher while

peripheral bonds open on the soft side likely weighed by upcoming Bonos supply

tomorrow. German 5-yr Bobl is leading the way higher with yield 1bp lower at

-0.135%, although 10-yr Bund is not far behind at 0.554% 0.8bp lower.

- Comments from ECB members continue to cross the wires with Weidmann last night

saying that it was appropriate to end QE this year and that predictions of a

mid-2019 rate hike were realistic. While Vice-President Constancio this morning

said that ECB's forward guidance will not be changed in the immediate future and

that inflation was still not meeting expectations.

- Markets also keeping a close eye on movements in the currency markets as the

US Dollar bounces off overnight lows against the Euro. While will be on the look

out for further syndication announcements with Spain and Finland still expected

to come to the markets in the near-term.

- 10-yr Bund/Bonos is 1.5bp wider and Bund/BTP 1.8bp wider

- Main data release today will be Eurozone final inflation data at 1000GMT,

however this is not expected to deviate from the 1.4% y/y flash estimate.